Oil prices jump as Trump Iran deadline approaches, following Kharg Island attack 

Oil prices rose Tuesday after the latest U.S. attacks on Iran and amid President Trump’s threats of escalation.

Prices for U.S. benchmark West Texas Intermediate were up more than 3 percent at $116 per barrel as of Tuesday. The price of international benchmark Brent crude was also up, though the increase was not as dramatic.

The U.S. struck military targets on Kharg Island, an Iranian oil export hub, according to a White House official, marking the second strikes the island has faced.

The increase also comes as markets await Trump’s Tuesday night deadline for a deal with Iran. If an agreement is not reached, the conflict could spiral, which would be expected to further raise prices.

“A whole civilization will die tonight, never to be brought back again. I don’t want that to happen, but it probably will. However, now that we have Complete and Total Regime Change, where different, smarter, and less radicalized minds prevail, maybe something revolutionarily wonderful can happen, WHO KNOWS?” Trump wrote Tuesday morning on Truth Social.

The war with Iran has sent oil prices soaring amid the effective closure of the Strait of Hormuz, a key oil shipping channel. About 20 percent of the world’s oil typically flows through the strait on a given day.

As a result, gasoline prices have also risen — the national average gasoline price was about $4.14 per gallon on Tuesday. 

Meanwhile, the stock market was down on Tuesday, with the S&P 500 down nearly 1 percent.